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InnerWorkings Posts Wider Q4 Loss, Gives '14 View - Analyst Blog

InnerWorkings Inc
. (
INWK
) reported operating loss of 2 cents per share in the fourth
quarter of 2013, wider than the Zacks Consensus Estimate loss as
well as the year-ago loss of 1 penny. The quarter
disappointed as the third consecutive one ringing in a negative
earnings surprise.

Behind the Headlines

InnerWorkings's revenue for the reported quarter grossed $245.6
million, up 22% year over year and surpassed the Zacks Consensus
Estimate by about 10%. Organic revenues improved 14% year
over year.

Adjusted earnings before interest, tax, depreciation and
amortization (EBITDA) edged down 1.6% year over year to $6.2
million.

Though revenues were at a record high, mounting total other
expense induced losses in the quarter. Total other expense in the
quarter amounted to $1.1 million, considerably up from $0.2
million incurred in the year-ago quarter.

Full-Year Highlights

InnerWorkings delivered operating earnings of 7 cents per share
in 2013, on revenues of $893.4 million. While the bottom line
plunged nearly 71%, an impressive top line improved 13% year over
year.

77% of revenues were generated from enterprise sales, with the
remaining 23% generated from middle-market sales.

Escalating expenses more than offset the revenue improvement
resulting in lower earnings.

Financial Update

InnerWorkings exited 2013 with cash and cash equivalents of $18.8
million, up from $17.2 million in 2012.

While revolving credit facility as on Dec 31, 2013 was $69
million (compared with $65 million as on Dec 31, 2012), other
long-term liabilities totaled $86.1 million (compared with $53.1
million as on Dec 31, 2012).

Operating cash flow totaled $39 million, surging 88% year over
year.

Guidance for 2014

InnerWorkings expects to generate revenues in the range of $0.965
to $1 billion, which translates into a year-over-year increase of
8 to 12%. Adjusted earnings are expected to range between 23 and
27 cents per share, marking a substantial improvement over the
year-ago level.

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